One of the important lessons I learned managing a mortgage company through the past three recession/recovery cycles is this: Consumer Confidence Drives Every Economic Recovery and Mortgage Origination Surge. http://www.cnbc.com/id/48416744
The reason is simple. Consumers that do not feel good about their income stability, government's stability, and their future out look do not purchase no matter what the price.
Last June 2011 the mortgage industry was surging due to consumer confidence. In July, the government created some uncertainty plunging consumer confidence along with mortgage origination. Rates were still very low.
July 2012 is setting new records for origination volumes because the stock market is surging and people feel good about the economy and their outlook.
In my history, I have never seen such a favorable mortgage market for people engaged in the industry and the consumer. Southeast Mortgage is now hiring and training great sales people who have not been in the mortgage business just to handle the surging purchase volume. Operations continues to deliver great service and fast 8-15 day turn times. Our commitment to fast turn times and great service will not diminish no matter how large production becomes. We believed in this in 1993 and it is the cornerstone of our belief system in 2012.
The next 4-5 years should be a mortgage cycle for the record books.
Chief Executive Officer
Southeast Mortgage of Georgia, Inc.